WASHINGTON — A trade war between the United States and Canada entered a new phase Tuesday as Ottawa’s retaliatory tariffs on American goods took effect, escalating a dispute that has steadily strained relations between the allies. Canada’s tariffs, which came into force just after midnight, cover roughly $20 billion in U.S. goods and impose duties of as much as 50% on products, from steel and aluminum to farm equipment, clothing and electronics. The list also reaches into the everyday commerce that binds the two economies, including cheese, seafood and cosmetics.
It was the latest sign that relations between the two neighbors have reached their lowest point in decades, after Trump dismissed Canada as the 51st American state, moved to rename Lake Ontario and mocked its armed forces. Ottawa’s latest measures are a response to tariffs imposed by President Trump last month on Canadian exports. The two governments had appeared close to a trade deal just a month ago.
But talks broke down in dramatic fashion, leaving both sides aggrieved and accusing the other of negotiating in bad faith. In a post Tuesday, Trump said Canada “has been ripping us off for years” and threatened to respond by removing access for Canadian businesses to key American markets. From now on, NO RECIPROCITY — NO ACCESS!” he continued.
Trade Representative], to take all necessary steps to REMOVE Canadian-origin products from GSA’s Multiple Award Schedules unless Canada restores full and fair reciprocity for American Farmers and Companies.” Canada’s prime minister, Mark Carney, has characterized the confrontation as more than a dispute over tariffs, arguing that demands by a bullying Trump administration threaten Canada’s economic independence. In a video released Tuesday, Carney argued that in the past, the United States has tried to use tariffs to “break us,” only to have Canada’s economy grow stronger and more diversified. He urged Canadians to buy Canadian and break economic dependency from the United States.
It’s always been Canadians looking out for each other.” Trump, meanwhile, has pressed Canada to make concessions on trade and has warned of further tariffs, including potentially higher duties on Canadian automobiles. He also threatened to ban the sale of aircraft from Canada’s Bombardier unless its products are manufactured in the United States. FLY ON AMERICAN AIRLINERS.
ENJOY AMERICAN LIQUOR AND BEVERAGES. AMERICA FIRST!” Earlier Monday, Trump posted an image showing Mexico, Canada, Central America, Greenland and Caribbean nations with the colors of the American flag. He also posted a caricature of him and Carney playing hockey in which Trump tells him: “Get up, Governor.” Both sides stand to lose in a trade war poised to hurt businesses large and small across the world’s longest international border.
Extract — continue reading at the source.
